Property purchases by foreigners declined 14.4 percent year-on-year in the first 10 months of this year, as travel restrictions dampened cross-border investment and relocation, analysts said yesterday.
Properties acquired by foreigners totaled 966 units between January and October, Ministry of the Interior data showed.
The number of land deals fell 37.7 percent to 2,119 over the period.
Photo: CNA
The retreat had much to do with COVID-19 travel restrictions that make cross-border investments or relocation difficult, even though the local property market has received support from capital repatriation and companies returning from China, Great Home Realty Co (大家房屋) lead researcher Mandy Lang (郎美囡) said.
It is the first time in four years that the number of properties acquired by foreigners dropped below 1,000 units, Lang said, although many Hong Kongers have demonstrated keen interest in moving to Taiwan.
Taipei reported most property transactions among foreign buyers at 218 units, followed by New Taipei City at 209 and Taichung at 46, government data showed.
The number of deals in Taoyuan was 114 over the period, 104 in Kaohsiung and 39 in Tainan, the data showed.
Lang said she is not surprised at the rankings given that Taipei is the nation’s political and economic hub.
Taoyuan reported the most land deals among foreign buyers at 380, followed by New Taipei City at 357 and Taichung at 288.
Overseas Taiwanese accounted for a rapid rise in demand for factories, office space and residential units in Taoyuan, Lang said, adding that Taoyuan has gained popularity as an investment and residential destination due to transport convenience and relative affordability.
Jessica Hsu (徐佳馨), head of the research department at H&B Business Group (住商不動產), said that property purchases by foreigners might consolidate after the central bank tightened the loan-to-value ratios to rein in property price hikes.
A major correction is unlikely, because Taiwan’s effective control of COVID-19 and low interest rates would continue to lend support to the local property market, Hsu said.
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